Wednesday, February 11, 2015

About the state of economicss

In succinct terms the global economy is in bad shape.   http://www.bloomberg.com/news/articles/2015-02-05/a-world-overflowing-with-debt?

Yet the president still thinks he is doing a bang up job.  At least that's what he keeps telling us.  Check out this no nonsense assessment.  Quote: "In terms of jobs and income, never in our history has median income actually declined during a post-recession recovery.  Yet Obama has achieved that dishonorable distinction.  He offered himself as a transformative political figure, but this couldn't have been what he had in mind. Meanwhile, the percentage of the U.S. population with jobs has fallen to lows not seen since 1978, before women fully entered the workforce.  And despite the promises made at the onset of his trillion-dollar wasteful "Stimulus," unemployment exceeded 8% for the longest stretch in recorded U.S. history.  Accordingly, Obama's economic record can only be labeled one of failure." http://cfif.org/v/index.php/commentary/43-taxes-and-economy/2456-by-the-numbers-obamas-economic-jobs-and-deficit-performance-is-the-worst-on-record

Quote: "As the economy gradually improves, which it is designed to do no matter who is in office, there continues to be an emptiness to it all. It's the result of an unrelenting attack that says you are a bad person if you have too much, can afford to send your children to college, want to make a lot of money and think America is the greatest nation in the world.  If you want to see this economy take off...more Americans need to get on their high horse."  I am not so sure that I agree that the economy is improving.  However, the rest is on target.    http://finance.townhall.com/columnists/charlespayne/2015/02/10/get-on-your-high-horse-n1955149/page/full

Regarding the application of Keynesian economics, establishment of the Federal Reserve and the consequences of the post WWII Bretton Woods Conference it has been observed that "These very objectives remain with us. The statutory mission of the Federal Reserve System has been called the “dual mandate.” It is price stability and full employment. Were it capable of “targeting” these outcomes successfully a great leap forward indeed would have been made in human welfare.  Yet according to the Bank of England’s Financial Stability Paper No. 13, published in December 2011, all economic outcomes under the current monetary regime — notably price stability and employment —have underperformed — dramatically —both the gold and the Bretton Woods gold-exchange standard."  Here is a bit of insightful history.   http://finance.townhall.com/columnists/ralphbenko/2015/02/10/the-greatest-depression-youve-never-ever-heard-of-n1955144/page/full

George Burns

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